In this question a few conclusions are drawn from two or more given statements. It is based on deductive reasoning rather than inductive reasoning. You have to consider the given statements to be true, even if they are different from established facts and accordingly choose the right answer.
Statements:
I) Some balloons are hats
II) All hats are cakes

Conclusions:


I) All cakes are balloons
II) All balloons are cakes

Neither I nor II follows

By carefully observing the diagram,

Conclusions:

I) All cakes are balloons :-  Not followed
II) All balloons are cakes :-  Not followed

Ans :- Neither I nor II followed